The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1887-06-24

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~ Failures
INV YoRK. June n-Thore was panic
In tho coffee market yesterday caused by
the recent heavy fall IN prices. Three
prominent houses were forced 70 suspend.
Thew were Arnold & Co. No. 81 Wall
street; Norton, Wcyi = Bevan, No loo
water street. and Mackey = Small, Front
street and Jones Lana
B. q. Arnold, Of Arnold & Co. ex-
planned the cause az his nrm's..suspension
- due 70 the fact that his numerous eli.
ents In Europe and Rio de Janerio could
not be called upon In sufnciont haste 70 put
up their marginA The arm does . CON-
mission business entirely, aud the i'm
mense size Of their outstanding orders
made Il impossible for them 70 put up
sufhcient sums 70 tide over the panic
The liabilities aud assets no ID unable 70
give
Norton, wsyl 3 Bevan state that the
suspension was due TO the existing de-
precision in spriccs, augmented BY the
failure Of other firms In the trade. Mac
key & Small are in the same position
Coffee has fallen from - 4eloo cent? TO
Is <ol0o cents per pound, representing .
drop Of about thirty cents on the dollar.
Nothing but vast capital was able to with
stand the call created by such differ
ence on firms having large orders out on
the wrong side OF the market nh fear
ed that other houses will 20 down to-day.
The liabilities Of Arnold = Co. are said TO
about e75o.0o0. and Of the other two firms
about v50o.oOO together Arnold q Co
were one Of the largest houses in the
trade. b G. Arnold was the founder OF
the Coffee Exchange, and has been IN
business here since 1873. Ia 1850 the nrm
failed for - SO. 900, but paid sixty cents
on the dollar.
Joseph J. ODonohue = Son yesterday
had the satisfaction Of saving the market
from total ruin by bidding in about 70.
900 bags 1T lAs0. thus checking the panic.
and causing . recovery BY 125 points.
When the substantial house Of O'Donohue
4 Co. began their bidding . great cheer
went up in the exchange, for il was con.
sidered both plucky and magnanimous on
their part Mr.. O'Donohuewas seen later
in the day.
ssYesr no said. sit has been day Of
great excitement, and shall be right glad
when il Is over. Yea it's true came 70
TIE rescue, and bought N00o bags Of
coffee w. H Crossman & Brothers and
ourselves purchased some 10000 bags
during the afternoon"
do you expect any more failuresF'
was asked
Il don't know, but hope not, though l
am waiting on the anxious seat for some
parties that have not yet come TO time
r g. Arnold's prominence in the pres
emit crisis. arises from the fact that he
was recognized a. the representative OF
the Brazilian syndicate which has had re-
cent control OF the market This svndic-
ate is supposed TO include Messrs.
Phipps & Co, and g. Amsinck 4 Co. OF
New York and Rio, and Messrs- Berloca-
trim q Co, John Brads haw & Co and
others. Of Rio. In this connection brief
history OF the speculation will be Of in
terest:
In April, 1854 xessrs J. J. O'Donohue
& Son, W. H. Crossman & Bros and sew
cral Havre brokers secured possession OF
five hundred thousand bags or more OF
the coffee In market, and manipulated the
market so that by April last they were
able to get out with profit avera ging
seven and one-half cents per pound The
net profits OF the deal were about 5000,
0O0 They had bulled the market up on
the prospect Of short crop Tor lsc6-SI
The crop for 1Ss5-S6 was 5 J65 0)O bags.
and when the syndicate saw in April last
that H.. receipts at Ro were $4,000 bags
per month, and the crop for the cur.
rent year promised 70 be large
" in excess Of the year
previous, they let 60 all their holdings,
but in . careful way 50 as not 10 break
prices and lessen their profits Then the
Brazilian syndicate came into the mar.
ket II u said by those who have watched
the market that they held 10000 bags,
and that the members have. inside OF
three or four days, been called upon for
q. 10000 cash for margins. II was this
syndicate Mr.. Arnold represented In the
trade. They have had most complete
control Of the market since they began
operations and ran the price OF coffee up
70 twenty-one and twenty-three cents II
ID believed some ofthe members have un
loaded. and that the holdings are much